When living on credit can be a dangerous habit

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Sometimes we find ourselves living on borrowed money without even realising it.  The trouble is, it is made so easy for us to do this by credit card companies, banks etc. that we are in at the deep end for some time before we become aware of it.

Not many of us are lucky enough to earn huge salaries, yet we all have the basics to pay like rent, mortgage, food bills, and utilities and so on.  If we have got a credit card or two in our wallet, or even better a bank loan given to us by our kindly Bank Manager, it takes no more than seconds and even less thinking time to conveniently make use of it to get us out of a tight spot towards the end of the month when cash is short.

But this can very quickly become a bad habit.  Unless you are one of those wonderfully organised people who pay off the balance on their credit card every month then before you know it, you will have been in blissful ignorance, making the minimum payments and not paying too much attention to the overall balance owed.  After all, it doesn’t really feel like real money does it?  It’s just a figure on paper and the fact that it is increasing day by day with interest added can sometimes pass us by.

If we don’t want to fall into this debt-trap, which catches many of us, what are the alternatives if we have a cash flow hiccup before our funds come in? Take a look at a payday loan site like the one in this link and you will see that there are various options around for you to make use of.

The best about short terms loans like this is that they are paid back immediately so you are never building up a borrowed sum that gets bigger and bigger.  The process is so simple and so transparent.  There are no hidden charges and no small print to catch you out.  It goes like this.  Select how much you need to borrow.  Choose a payback date that suits you.  See on-screen how much this will cost you.  If you are happy, press the ‘accept’ button and off you go.  The company will ask for basic information so that they can assess your credit worthiness but they will not carry out intricate credit checks like the larger banks and building societies. Even if your credit file is not perfect, you may find that you will be accepted.

There are also limits imposed which keep it sensible.  You cannot borrow more than £400 and for no longer than a month.  You should find this gives you plenty of room for manoeuvre as very often it is smaller amounts for just a few days that we need the most of.  The best thing of all is that you are not living on credit.  Whatever your borrow you pay back.  End of story.  You are left with no huge bill to worry about and no monthly repayments to budget for.

Quite simply, used correctly, these types of loans can help us to waste less of our money.